News Corporation (NWS)

Deutsche Bank has maintained its “buy" on
News Corporation
, but decreased its 12 month price target by 3.1 per cent to $25.20 a share after the company delivered earnings of “high quality" in the first quarter.

The broker says that
Rupert Murdoch
’s News is a compelling opportunity driven by a range of factors including: the fastest long-term growth prospects among majors; a sizeable share buy-back; and valuation upside potential due to the demerger of the publishing assets in 2013.

News Corp reported operating earnings growth of 3.4 per cent to $1.45 billion in the first quarter, with growth primarily a result of strong performances in cable, television and film. The company reaffirmed 2013 guidance of high single to low double digit growth in operating income.

“We expect FY13 to be another year of double digit earnings growth ahead of the separation with forecast FY13 EBIT growth of 11.4 per cent, at the top end of management guidance of 8 per cent to 12 per cent growth range. Our FY13 estimates reflects the positive contribution from the content business driven by the continued double digit growth in cable led by international expansion and higher earnings in television driven by retransmission partially offset by lower earnings in Sky Italia and the “Other" segment."

Deutsche Bank is forecasting earnings per share of $US1.69 in 2013, $US1.93 in 2014 and $US2.29 in 2015. News Corp reported EPS of $US1.41 in 2012.